FX.co ★ GBPJPY: Bearish Bias (Dec 13, 2013)

Overview:
GBP/JPY is trading with bearish bias. It is supported by weak yen sentiment; demand from Japan importers. But GBP/JPY gains are tempered by Japan exporter sales; positions adjustment before weekend. Daily chart is positive-biased as MACD is bullish, stochastics stays elevated at overbought; the 5- & 15-day moving averages are advancing.

Trading recommendation:

The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. A short position is recommended with the first target at 168.05 in view; a breach of this target will move the pair further downwards to 167.4. The pivot point stands at 169.35. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, the price is most favorably expected to move further to the upside. In that scenario a long position is recommended with the first target at 170.05 and the second target at 170.8.

Resistance levels:
170.05
170.8
171355

Support levels:
168.05/
167.4
166.8